Rothenberg Ventures, the four-year-old, San Francisco-based seed-stage venture firm, may be on the brink of implosion, say several sources close to the firm.

We reported yesterday that several high-level employees had parted ways with Rothenberg, including:

Tom Leep, Director of Finance (father of Tommy Lepp)

Tommy Leep, Partner, Head of San Francisco Office (left July 2016)

Chief Revenue Officer (left August 17, 2016)

Chief Financial Officer(left in June 2016)

James Taylor, General Manager (left August 2016)

Fran Hauser, Partner (left July 2016; Hauser was a former president of digital at Time Inc. Hauser was brought in with some fanfare as a venture partner in May 2014. Yesterday, she updated her LinkedIn profile to reflect that she left Rothenberg in July.

Messages to Rothenberg have not been returned. According to one source, Rothenberg Ventures founder Mike Rothenberg has told those remaining that “very few people will be left.” In what appears to be a related development, the firm’s site has also been down since last night.

Why the mass exodus? According to one source, Rothenberg Ventures is under investigation by the SEC after a lower-level employee alerted the agency to what this person reported as wire fraud and breach of fiduciary duty. This same source says the employee was subsequently fired and is now suing the firm for retaliation.

All SEC investigations are conducted privately. An investigation does not mean that the agency will file a case in federal court or bring an administrative action.

Either way, a much thornier issue for Rothenberg Ventures, say numerous former employees, is founder Rothenberg himself, who has sometimes seemed to live more like a billionaire than the manager of a modest venture fund — spending lavishly to attract moneyed individuals as investors and, over time, growing increasingly focused on becoming as famous as some of them.

Making a millionaire

Rothenberg, an Austin native who says he comes from humble means — “no one in my family has any money,” he once told us — was smart enough to nab an undergraduate, then graduate degree, from Stanford, then bootstrap a real estate fund with his brother before moving on to Harvard to secure an MBA.

Soon afterward, inspired by business leaders he had met while at Stanford, Rothenberg planted himself in San Francisco and got down to the business of trying to shake up the stodgy venture industry. Step one involved raising a $5 million fund from “friends, family, and former roommates,” as reported in a Bloomberg story about Rothenberg last year.

His timing was ideal as these things go. In 2012, the market was in the middle of a three-year upswing, following the financial crisis of late 2008. A number of newer faces was also beginning to gain prominence in the venture industry, along with the trust of so-called limited partners — the individuals and institutions that fund venture firms.

Rothenberg is also a natural salesperson, and as such, quickly evolved his pitch for Rothenberg from yet another seed-stage fund to a thought-leading outfit willing to make big bets on virtual reality before most people in Silicon Valley saw it as a major opportunity.

Indeed, by late 2014, Rothenberg Ventures — whose more garden-variety bets include the clothing company Chubbies and the floral delivery startup BloomThat — announced it was launching a virtual reality startup accelerator, River, and that it planned to provide $100,000 in seed funding to virtual reality companies expressly. Among its bets was Fove, which makes an eye-tracking head-mounted display and went on to raise an $11 million Series A round earlier this year.

But employees say that as the firm grew, so too did Rothenberg’s spending, and not merely on their paychecks.

Among the expensive ways that Rothenberg found to market the firm to prospective limited partners, he hired race-car driver Collete Davis and spent hundreds of thousands of dollars more to maintain and transport her race car to events. Another $200,000 reportedly went toward a suite at the Super Bowl that was meant to woo investors.

Rothenberg Ventures — which counts many people in tech and finance as backers, including Jeff Seibert, a former head of product at Twitter, and Michael Cronin, founder of the private equity firm Weston Presidio — also inserted itself increasingly into celebrity circles, say employees, including buying tickets to the Golden Globes, co-sponsoring actor Chase Crawford’s 30th birthday party in West Hollywood, and spending unsparingly to executive produce a video for Coldplay.

Says one source, “Mike wants to be famous.”

They say he began to live as if he were, too, with many other examples of seemingly out-of-control spending. Among them, says one source, Rothenberg had hired up to three executive assistants at one point. He also employed a personal assistant for himself and a private driver. Further, employees say he refused to fly coach and instead maintained a $2,000-per-month membership with the young, subscription-only airline service Surf Air.

They also say Rothenberg began to spend an inordinate amount of time managing his reputation, as questions began to surface around how he afforded it all. When Bloomberg last year questioned the firm’s ability to finance itself, Rothenberg sent two employees to SFO, purchasing them airline tickets so they could head to airport newsstands and buy copies of the issue in hopes that it wouldn’t be as widely read.

All the while, Rothenberg was hiring, employing up to 60 people across Rothenberg Ventures at one point. For a firm that manages hundreds of millions of dollars, that wouldn’t be a startling amount of overhead. But Rothenberg Ventures has raised $47 million across four funds dating back to 2013, according to SEC filings. Given that firms typically collect 2 percent of what they raise in management fees, that would leave just $940,000 for Rothenberg’s entire operation. In fact, most funds of a similar size are run by two or three people.

Next steps

What happens now is anyone’s guess, including whether Rothenberg will be forced to sell any stakes in the company’s 100-plus portfolio companies to a secondaries specialist. When we asked a founder of a top secondaries shop for more information today, the executive declined to provide any information, saying only that Rothenberg Ventures “has been super nice to me.”

Certainly, while employees paint a picture of an overly ambitious founder who paid too little attention to his firm’s finances, many outsiders like Rothenberg and benefited richly from Rothenberg Ventures’ generosity.

Among its most popular events is an annual Founders Field Day at AT&T Park, where the San Francisco Giants play. In April of last year, the outlet Recode likened it to a scene lifted from “Silicon Valley” after the HBO show opened its second season, two weeks earlier, with a scene at the baseball park.

Employees say Rothenberg loved it.

COMMENTARY: I just love it when controversy surrounds a venture capital firm, especially when it involves its founder, and that founder goes crazy spending investor capital. With so many key members of the managment team bailing out, some with just a few months on the job, it is clearly time to "abandon ship." Still no response from Mike Rothenberg. The SEC investigation must be going full speed ahead. There's probably a lot more going on besides the lavish spending. The shutdown of the website is another clear signal that this VC firm is not taking on any new startups. The high flying and party days are over for Rothenberg Ventures.

At the end of 2015, Rothenberg Ventures was the VC leader in the number of investments made in the AR/VR space with a total of 32 startups in which it had invested. These ventures are very early stage, so it remains to beseen whether any of them will pan out or ever reach unicorn status.

CB Insights Infographic of Leading VC firms investing the the AR-VR Space between 2011 and 2015 (Click Image To Enlarge)

It appears the Mike Rothenberg has a preference for founders who graduated from Stanford and Harvard. Mike attended both schools. An intriguing coincidence or preference on the part of Mike.

To be continued.

Courtesy of an article dated August 18, 2016 appearing in TechCrunch and an article dated January 6, 2013 appearing in TechCrunch and an article datd January 28, 2016 appearing in CBInsights

04/05/2016

Facebook CEO and co-founder Mark Zuckerberg having fun test driving the new Oculus Rift VR headset after its launch last month. (Click Image To Enlarge)

VR hardware makers seem to know that, for now anyway, it's in their mutual interest not to tear each other down.

Competition in the video game world can be pretty cut-throat—they don't call it the console war for nothing. Whenever a new generation of home video game machines emerges, it sometimes almost feels as though the manufacturers—behemoths like Microsoft, Sony, and Nintendo—delight in trying to eviscerate each other.

But at the moment, the virtual reality world is a bit different. With the first Oculus Rifts showing up on doorsteps today, four years after one of the most famous Kickstarter campaigns of all time, the consumer virtual reality era truly begins. But instead of mirroring the video game industry’s pitched battlefronts, VR hardware makers seem to know that, for now anyway, it's in their mutual interest not to tear each other down.

Richard Marks, who heads up VR efforts for Sony, says.

"The attention Oculus brought to VR was great. The fact that there are multiple VR platforms all coming to market, that is really good for the timing of VR, because it does create more of a critical mass. It is challenging for any one platform to create a new medium."

That’s a sentiment I hear again and again during conversations with leading VR community figures. What’s clear is that industry insiders believe consumer virtual reality needs to get off the ground before major players can start worrying about which company will "win" the medium.

Anthony Batt, the cofounder and executive vice president of Wevr, a leading virtual reality content production company, says.

"This reminds me of the early days of the Internet. Everyone’s best interest right now is to grow the pie so VR becomes a widely adopted industry."

Oculus Rift VR headset (Click Image To Enlarge)

Virtual reality, of course, is not a new technology, having been around in one extremely expensive form or another for decades. But with the arrival of the $599 Rift, HTC’s $799 Vive next month, and Sony’s $399 PlayStation VR in October, we’ve reached the point where deeply immersive, high-fidelity, high-quality VR experiences are actually arriving in people’s living rooms.

Although the Vive at launch will outpace the Rift by including a set of sensor-laden hand-held controllers that lets users see and incorporate their hands in 3-D VR games and other experiences, Oculus is expected to soon keep pace when it releases its Touch controllers later this year as a separate product.

Google's Cardboard DIY headset is made out of cardboard (Click Image To Enlarge)

FEW EXCLUSIVES -- YET

The dawn of this age comes with big expectations. Analysts at Digi-Capital predicted last fall thatVR would be a $30 billion industry by 2020, while Piper Jaffray pegged the value of VR content—everything from games to rich cinematic experiences, live events, real estate applications, surgical training tools, and more—at $5.4 billion by 2025. There are already hundreds of VR experiences available for platforms like the mid-range Gear VR—which is powered by Oculus software—and low-end Cardboard, but if one thing is clear at this moment in VR’s evolution, it’s that the industry will go nowhere if there isn’t a steady flow of great new content at every quality level, and at least some level of mutual support. Beating the other guy today isn’t the primary motivation.

"For so many people in this industry, VR has been this childhood dream of nerds and sci-fi fans, and of course, VR had a couple false starts in the past. So most people think the biggest risk is that VR will not work, not be good enough, not gain wide adoption, and think only a secondary risk [is] that their competitors get a better position."

Nick DiCarlo, the vice president and general manager of immersive products and virtual reality at Samsung, maker of the Gear VR, concurs.

"Right now, the VR industry is much more focused [on] building awareness of VR as an idea, and how cool it is, rather than competing. The VR community really works together to build . . . momentum in the space."

While it’s unclear if companies like Oculus (which Facebook bought for $2 billion in 2014), HTC, Sony, and Google are actually and actively cooperating with each other, many industry experts say their impression is that those companies are mostly playing nice with each other at this point. In the video game industry, one mark of the cut-throat attitude between competitors is their thirst to be the only platform on which big-name game titles are available—especially at launch. But with a few notable exceptions, such as Minecraft and Rock Band being available only for the Rift, or Gran Turismo launching solely on the PlayStation VR, that doesn’t appear to be happening much in the VR world.

Linc Gasking, the cofounder and CEO of 8i, a developer of VR production technology, says

"For Oculus to succeed, VR needs to succeed, and everyone is in it together. You see that playing out more and more, where the big [hardware makers] are not asking for exclusivity on content yet, which really helps that process."

Gasking reasserts, pointing out that at this early stage,

"The success of VR floats all boats. VR is the platform, not any individual device."

"I’ve seen a lot of collective support from one another in the community. I haven’t seen [platform makers] walling their gardens off. . . . We haven’t seen anyone saying 'we want an exclusive on this for us, and you can’t do it for others.'"

When asked on Twitter about the possibility of Oculus or Sony having exclusive content, Oculus founder Palmer Luckey responded,

"I am glad Sony invests in the VR ecosystem, and encourage others to do the same!"

Another reason why VR companies haven't been chasing exclusives as hard as they do on the traditional video game console front is that they are keenly aware that bad VR experiences on any platform or any device can turn people off to the entire technology forever. That’s especially troubling to executives if the person who has the bad VR experience is a decision-maker at a Hollywood studio or an ad agency. Those people, after all, are the ones who have the budgets to finance big VR projects, the very projects that will become a financial lifeblood for this nascent industry. All the virtual reality hardware makers need fantastic developers to create fantastic content for their devices.

That said, though consumer VR is still in its earliest stages and no one really knows how large the businesses being built around it will get, there’s no shortage of work for people developing VR content. Milk argues.

"The thing now is that there’s more work than any of us can handle. We’ve had to learn how to say no, because in the last few years, we’ve gone from banging on doors and saying, ‘You should do something in VR, this is going to be really important,’ to everyone with a marketing budget banging on our door saying, ‘We need to do a virtual reality experience.’"

Gasking agrees that VR has reached the phase where people are desperate not to miss the boat, despite the fact that most of the consumer hardware is only just starting to come online. Gasking says.

"We’re seeing all the increase in press create a surge of interest. We got a FOMO call from an ad executive concerned his clients were missing out on the VR wave and wondering how to start to buy advertising for his clients."

There's yet another reason why VR hardware makers may also be more flexible about exclusivity right now: They really need developers who produce games (such as Half-Life and Mortal Online) that are already wildly popular on non-VR platforms to create VR versions that can quickly draw customers to their devices. So, in some ways, VR hardware makers need established game developers more than established game developers need the hardware makers.

THE LOOMING VR CONSOLE WAR

Make no mistake, however: Hardcore competition between the likes of Oculus, HTC, Sony, and others may already be bubbling beneath the surface.

One reason, says Jeffrey Greller, an agent at William Morris Endeavor who specializes in VR, is that because hardware like the Rift and the Vive is expensive—especially when many buyers will also have to purchase a gaming-quality PC to power their new gear—consumers are likely to pick one platform and stick with it.

Greller says.

"Once you’ve committed to a hardware platform in VR, it’s going to be very difficult for another hardware brand to have you purchase their technology."

That could very well end up being a problem on the higher end of the VR spectrum; devices like Samsung’s Gear VR, Google’s Cardboard, and others are substantially cheaper than the Vive and the Rift.

And, since the Rift and the Vive offer very similar features, that’s where the really heavy competition is likely to brew, posits Bruce Wooden, the head of developer and community relations at VR development company AltSpaceVR and the cofounder of conference and meetup organizer Silicon Valley Virtual Reality.

Wooden said.

"If there’s any kind of competitive spark at this stage, it would have to be between Oculus and HTC. They have two high-end headsets that are generally targeting the same audience."

Still, while he notes that it’s "unavoidable" for there to be some level of competition in the VR industry, it’s not even close to the ferocity of the console wars. At least not yet.

In the meantime, today’s launch of the Rift and the imminent launches of the Vive and PlayStation VR can only be a good thing for the broader VR ecosystem, especially because each of those systems, along with lower-end platforms like Gear VR, Cardboard, and others, together meet the full range of people’s VR needs.

Sony's Marks said.

"Having multiple platforms in VR is good, especially at this early stage. Serving the customers of those platforms with VR in [each company’s] unique way makes sense."

So are all the big VR companies actually rooting for each other?

Dixon said.

"I think they are. Obviously, Oculus and Valve and everyone want to be the leader. But I think everyone agrees that for the next few years, [the most important thing] is that everyone succeeds."

(Neither Oculus, Google, nor HTC would comment for this story.)

COMMENTARY: Virtual reality could be big soon. Augmented reality could be bigger, but might take longer to get there. How big and how soon? Let’s look at what we learned in the last year and how that changes the mix and timing of AR/VR forecasts.

Click Image To Enlarge

Timing Is Everything

At the start of last year it looked like consumer AR could launch in 2016. AR now appears largely focused on enterprise users this year, with most consumer AR expected to launch around 2017 (although wild cards like Magic Leap could change that). This effectively pushes AR consumer market revenue back by 12 months, with AR now forecast to hit $90 billion by 2020. VR’s topline remains largely unchanged, with $30 billion forecast by the end of the decade. The timing change also moves the tipping point for AR passing VR from 2018 to 2019. So where our internal numbers hit similar revenue to last year’s forecasts, they now do so a year later.

Click Image To Enlarge

Mobile First

We now know that the CPU/GPU requirements for high-end VR come at a premium. Sony Playstation VR and mobile VR (from Samsung and others) are expected to be the initial consumer VR market drivers, changing installed base forecasts in favor of mobile VR. There isn’t a material impact on topline VR revenue forecasts, but the revenue mix looks a bit different by sector. VR largely remains an entertainment market driven by hardware, games, video and theme parks, with non-entertainment apps driving a meaningful minority of revenue by 2020 as the market develops. (See original VR sector approach here)

Click Image To Enlarge

Changes to consumer market launch timing had a significant impact on topline AR forecasts, but the sector mix looks broadly similar to last year’s numbers. AR hardware revenue will drive the market, followed by augmented commerce, data, voice, video, enterprise, theme park, advertising, apps and games revenues. (See original AR sector approach here)

Go East, Young Man

The weight of innovation for AR and VR is in America today, with an unsurprising bias towards the West Coast. There are significant concentrations of development in Asia, with the Chinese market in particular giving rise to many home grown competitors. Where higher than average AR/VR revenue per user is likely to come from North America, Western Europe, Japan and South Korea, installed base is generally the ultimate driver of long term revenue. Combining our forecasts by sector and country/region indicates that Asia (China, Japan, South Korea, others) could drive AR/VR revenue by 2020, followed by Europe and North America. This geographic potential has not escaped the notice of entrepreneurs and investors, as everyone tries to figure out where to place their bets.

Click Image To Enlarge

Plus ça change, plus c’est la même chose

What does this mean for established players and startups? The short version is that everything has changed and nothing has changed. Despite Apple buying Metaio, it might take 18 to 24 months for a consumer market large enough for it to enter. Facebook, HTC/Valve, Sony and others will push forward with PC/console VR, as Facebook now explores AR in parallel. Samsung (with Facebook) and dozens of competitors will drive mobile VR. Google’s friends Magic Leap will do what they’re going to do, as Microsoft, ODG and others focus on Enterprise AR in 2016 ahead of consumer AR next year. Mobile VR will see hardware prices fall driven by Chinese competitors like Letv, and everyone hopes Moore’s Law brings high-end VR within reach of the average consumer.

The direction remains the same, it’s just a question of timing. We’ll keep updating as hard market data becomes available this year.

12/17/2015

The following graphic is the first incarnation of a virtual reality industry ecosystem supergraphic. It represents more than 150 different companies which provide head mounted display and related hardware, production equipment and software, VR apps, research, and technical and other services, organized into 22 categories across 11 major sectors.

The 2015 Virtual Reality Ecosystem Map comes with a caveat: the graphic is not comprehensive. It is a sample, albeit a large one, of the many different kinds of virtual reality companies operating today. There are many more companies — indeed, entire categories — that were not included, merely due to the constraints of time and space. The pace of change in this field is breathtaking.

Click Image To Enlarge

COMMENTARY: VR (virtual reality) and AR (augmented reality) are exciting – Google Glass coming and going, Facebook’s $2 billion for Oculus, Google’s $542 million into Magic Leap, Microsoft’s HoloLens and the launch of the Samsung Gear VR headset into the mainstream market. There are amazing early stage platforms and apps, but VR/AR in 2015 feels a bit like the smartphone market before the iPhone. We’re waiting for someone to say “One more thing…” in a way that has everyone thinking “so that’s where the market’s going!”

A pure quantitative analysis of the VR/AR market today is challenging, because there’s not much of a track record to analyze yet. We’ll discuss methodology below, but Digi-Capital’s new Augmented/Virtual Reality Report 2015 is based on how VR/AR could grow new markets and cannibalize existing ones after the market really gets going from next year.

AR is from Mars, VR is from Venus

VR and AR headsets both provide stereo 3D high definition video and audio, but there’s a big difference. VR is closed and fully immersive, while AR is open and partly immersive – you can see through and around it. Where VR puts users inside virtual worlds, immersing them, AR puts virtual things into users’ real worlds, augmenting them.

You might think this distinction is splitting hairs, but that difference could give AR the edge over not just VR, but the entire smartphone and tablet market. There are major implications for Apple, Google, Microsoft, Facebook and others.

Where’s the beef?

VR is great for games and 3D films – that’s what it was designed for. However it is primarily a living room, office or seated experience, as you might bump into things if you walked down the street wearing a closed headset. Still a great technology with a ready and waiting user base of tens of millions amongst console, PC and MMO gamers, those who prefer 3D to 2D films, as well as niche enterprise users (e.g. medical, military, education). This has attracted a growing apps/games ecosystem around early players like Unity, Valve, Razer and others.

AR is great fun for games, but maybe not as much fun as VR when true immersion is required – think mobile versus console games. But that possible weakness for gamers is exactly why AR has the potential to play the same role in our lives as mobile phones with hundreds of millions of users. You could wear it anywhere, doing anything (well maybe not some things – that wouldn’t be polite like the consumer criticism received by Google Glass). Where VR is like wearing a console on your face (Oculus), AR is like wearing a transparent mobile phone on it (Magic Leap, HoloLens).

Eye phone

AR could play a similar role to mobile across sectors, as well as a host of uses nobody has thought of yet. The sort of things you might do with AR include aCommerce (yup, we just invented a new cousin to eCommerce and mCommerce), voice calls, web browsing, film/TV streaming (in plain old 2D as well as 3D), enterprise apps, advertising, consumer apps, games and theme park rides. So while games feature prominently in most AR demos, they are only one of a multitude of potential uses for AR. See full analysis by sector here.

Real Dollars

Digi-Capital forecasts that the virtual and augmented reality industries will hit $150B in annual revenues by 2020, with AR taking the lion’s share at $120 billion.

Click Image To Enlarge

CB Insights reports that investments in virtual and augmented reality companies have seen their most active quarter in 2015, with over 40 deals (and $240M invested) in the first six months of the year.

Click Image To Enlarge

ABI Research projects that 43 million virtual reality devices will ship by 2020:

Click Image To Enlarge

Courtesy of an article titled 2015 Virtual Reality Ecosystem Map appearing in Greenlight VR and an article dated August 11, 2015 appearing in Greenlight VRand an article dated April 2015 appearing in Digi-Capital

12/13/2015

There's currently no better way to get started with virtual reality.

When Samsung and Oculus debuted their Gear VR headset almost a year ago, the companies made it clear the device wasn't yet ready for the masses. Billed as "Innovator Edition" models, the original Gear VRs were intended mainly for early adopters. They only fitted a limited number of phones -- the original was designed just for the Note 4; the second for the Galaxy S6 and S6 Edge -- and were also quite pricey at $200 per headset.

Beginning November 10, 2015, Samsung began taking pre-orders of their new Samsung Gear VR headset through Amazon.com, BestBuy.com, and Samsung.com. On November 20, 2015, Samsung and Oculus released the first-ever consumer-ready version of the Gear VR for shipment. The new Samsung Gear VR headset is smaller, lighter, cheaper (only $99) and is compatible with more phones (the Note 5, S6, S6 Edge and S6 Edge+). But, more importantly, its content library has exploded, with more VR apps and games than ever before. Virtual reality has finally gone mainstream, and there's no better way to get started than with the new Gear VR.

Click Image To Enlarge

Summary

Samsung's Gear VR is the company's first virtual reality headset designed for everyday consumers. For just $99 and a compatible Samsung phone, you can dive into an incredible experience that'll have you watching 360-degree movies and playing super immersive games. Yes, it only works with a limited number of phones, but right now, there's no better option if you want to give VR a try.

Samsung never made any pretensions that the Gear VR would be small and portable -- it's always been a rather large headset that looks like you have a giant pair of ski goggles strapped on your face. But every iteration of the Gear VR has been more lightweight than the last, and the new consumer-ready version is no exception. Samsung says it's about 19 percent lighter, and I definitely feel it. The previous models had chunky white plastic around the head straps while the current model has none. This not only reduces the headset's overall weight, but makes it far less cumbersome to put on. All you do is strap the headset to your head with a couple of elasticized Velcro straps -- one around the back of your head and the other around the top -- and you're ready to go. The top strap is technically optional, but I liked having it on for a more secure fit.

The fit, by the way, is pretty excellent. The soft foam padding around the eyes and the nose bridge makes the fit very comfortable (My discomfort came from nausea instead; more on that later). Another upside is that new Gear VR also easily accommodates most glasses -- I was able to wear mine without too much shifting around. That said, if you have a relatively lightweight prescription, you might want to go without your glasses entirely for additional comfort. Plus, the Gear VR has a focus wheel at the top so you can easily adjust the focus to match your eyesight.

Like all the previous Gear VRs, the new model is not a standalone headset -- it's essentially a VR viewer for your phone; sort of a fancier version of Google's Cardboard, if you will. Except that unlike Cardboard, the Gear VR has additional hardware -- an accelerometer, a gyroscope and proximity-based sensors -- on board to reduce latency and increase the performance overall.

Click Image To Enlarge

To get started, you'll have to snap the phone onto the front of the Gear VR so that the display faces the headset's stereoscopic lenses. Simply dock the phone into a micro-USB dock on the left and then lock it in place with a plastic holder on the right. At least for now, the Gear VR is compatible with four different Samsung phones: the Galaxy S6, the S6 Edge, the S6 Edge+ and the Note 5. Since the latter two phones are slightly larger than the others, the Gear VR has a toggle that you can use to slide the micro-USB dock to the left or right to accommodate the different sizes. Though it seems like the headset's use is limited to just these four phones, Samsung told us that it's highly likely the current Gear VR could be compatible with future Samsung phones too.

By default, controls are relegated to the four-way directional touchpad on your right temple. It's much more contoured than previous Gear VR models plus there's a raised center nub, which makes the whole thing far easier to use -- you can just feel your way around to figure out the controls. Above the touchpad is a back button, which has been relocated slightly to the right for easier accessibility, while a volume rocker is located to the front.

Though it's not included with the Gear VR, I also recommend you wear a pair of headphones with it, as it'll make your VR experience more immersive. There are also a few games that would benefit from the use of a dedicated gamepad controller (again, this isn't included with the headset), which you can connect to the phone via Bluetooth.

Hand-On Test

I tested the Gear VR with a Samsung Galaxy S6 Edge+. Setup was pretty easy; once you have the phone loaded into the headset, you're pretty much ready to go. As soon as it docks into place, the handset will automatically launch Oculus Home, a VR content portal from where you can launch a variety of apps, movies or games (if you don't have the Oculus app installed, it'll prompt you to do so). Virtual reality content has exploded in the past year, and nowhere is this more evident than the variety available on the Oculus Store -- Samsung and Oculus tells us there are already more than a 100 apps and games on board, with even more coming down the pipeline.

Before we delve into the content, let's talk about the display quality. In short, it's not great. Since you're essentially pressing the phone's screen up to your face, there's definitely a slight "screen door effect" where you can spot individual pixels. This effect seems a lot more reduced than previous Gear VR headsets, but it was still noticeable. As a result, videos looked pretty pixilated and games just didn't look as sharp as I would like. Of course, a lot of this is dependent on the phone's display -- the S6 Edge+ has a very good 1440 x 2560 Quad HD resolution, but even that didn't prove sharp enough when magnified with the Gear VR's lenses. I'll admit to brushing aside the need for phones with 4K displays, but perhaps there's a real benefit if you plan to use them with VR headsets.

That said, once I started really playing around with the content, I found myself casting those display quibbles aside. Viewing 360-degree video of an ocean landscape was wonderfully serene and peaceful, and I also enjoyed watching episodes of Doctor Who on Netflix as if I were in movie theater. Playing games was especially delightful: Shooting at incoming drones in EVE:Gunjack and flying around on a jetpack in Omega Agent was fun and engaging. Being able to look around you to home in on enemy targets feels a lot more interactive than just waggling a thumbstick.

Click Image To Enlarge

My favorite game by far, however, is Land's End, a puzzle game akin toMyst or Monument Valley. Set on a rocky island, you solve puzzles by staring at dots to illuminate them, tracing a line from dot to dot in order to unlock a path. The immersive VR environment coupled with the game's tranquil soundtrack makes this one of the more meditative games I've ever come across. Note: I recommend using a swivel chair to play some of these games so that you don't suffer from too much neck strain.

As much as I was having fun however, I found that I could not wear the Gear VR for very long periods of time. That's because it does make me feel a bit nauseous; I had to take the headset off every half hour or so to stop my head from spinning. Of course, your mileage may vary here, but it's worth the warning. I happen to be one of those people who suffers from motion sickness on boats and while traveling down windy roads, so I'm perhaps more susceptible to this kind of thing.

Another thing to watch out for is battery life. After a solid hour of VR time, the phone's battery dropped by as much as 20 percent. After four or five hours, the phone was nearly dead. Also beware if you do want to keep the phone in VR mode for very long, as it does occasionally get hot enough to overheat.

The Competition

If you just wanted to get your feet wet with virtual reality, Google's Cardboard is not a bad start. After all, it costs close to nothing and it's dead easy to set up. The downsides, of course, is that it doesn't offer nearly the same degree of sophistication and immersion that the Gear VR does. The Gear VR has straps so you can wear it for hours on end, additional on-board sensors to reduce latency, plus it has a dedicated touchpad for greater control. At the end of the day, Google Cardboard is just, well, cardboard, while Samsung's Gear VR is a full-fledged dive into virtual reality.

The Google Cardboard VR headset is available through Amazon for under $20.00 (Click Image To Enlarge)

Then again, Gear VR's performance doesn't quite compare to more advanced VR headsets like the Oculus Rift, the PlayStation VR and the HTC Vive. For one thing, Samsung's Gear VR doesn't have positional head tracking, so you can't do things like duck behind walls or bend your head down to take a closer look at something on the ground. The other headsets also promise to be far more powerful -- the Rift and the Vive will be powered by high-end gaming rigs while the Playstation VR will harness the computational prowess of the PS4. That should lead to a higher fidelity experience with better graphics and better physics -- features that even the best smartphone won't be able to match.

Oculus Rift VR headset is designed for professional VR developers. The headset and Oculus' software developers kit (SDK) is available on Amazon for $1,275.00 (Click Image To Enlarge)

Yet, those other systems aren't even available to the public yet. Plus, they promise to be much more expensive. Though the prices aren't official just yet, rumor is that they'll cost at least $300 each. And that doesn't even include the cost of a high-end gaming PC, which could be well over $1,000. If you plan on going with the Playstation VR, a PS4 isn't cheap either, retailing at around $350. Even if you were to buy a Gear VR along with a compatible Samsung phone, that would only run around $500 to $700 if you get your phone off-contract. Additionally, all three rival headsets need to be tethered to their source computer, which limits your movements when playing games. The $99 Gear VR, on the other hand, is completely mobile, letting you swivel around on your chair or take it anywhere.

Sony's Project Morpheus is now called PlayStation VR and has a vague release date of Q1 2016, but Sony has not announced a price (Click Image To Enlarge)

The HTC Vive VR headset was designed for professional VR developers and will be available for pre-ordering in February 2016 with shipments in April 2016. No prices have been announced (Click Image To Enlarge)

Closing Statements

If Google Cardboard gives a taste of virtual reality, Samsung's Gear VR offers up a whole feast. With just the addition of a smartphone, you can get a truly immersive VR headset that lets you travel distant lands, watch movies and shoot up spaceships in alien worlds. It's comfortable to wear for hours at a time -- even if you wear glasses -- and controls are intuitive and easy to understand. Yes, it's only compatible with Samsung's latest handsets and no, it's not quite as advanced as headsets like the Oculus Rift. But at only $99, Samsung's Gear VR still makes for a great entry-level VR headset for the everyday consumer. If you already have a compatible Samsung phone, it's a no-brainer.

COMMENTARY: If you haven't already done so, I urge you to read my blog post of September 24, 2015, when Facebook and Samsung announced the Samsung Gear VR headset at the Oculus Connect 2 Developers Conference.

With Gear VR, Samsung gets to be the first to push VR hardware out to the mainstream and it serves as a lure to bring brand-new Galaxy owners in. The company is putting itself at the tip of a sector that; according to SuperData's Stephanie Llamas, will drive the bulk of VR sales at first.

The mobile slice of the VR sector is forecasted to generate nearly $1 billion in revenues by the end of 2016 and fatten to about $4.4 billion by the close of 2019, according to SuperData Researcher's preliminary study into the nascent market.

The big lure for early adopters is the very affordable price of $99.00. This pricing strategy appears to have worked with both BestBuy and Amazon reporting that they are out-of-stock, but are taking back orders for delivery at a future date. If you already own a Samsung Galaxy S6, S6 Edge, S6 Edge+ or Note 5 you are good to go, but first you must download the Oculus VR software. Once installed, you will be able to run over 100+ (and growing) VR apps designed for the headset.

I haven't tried the Samsung Gear VR headset yet, but Amazon claims the headset is a No 1 best seller and owners have given it an average review rating of 4.5 stars. 65% of owners have given it a 5 star rating. The biggest complaint from Amazon owners has been the video quality which depends on the resolution of your Samsung phone. Owners are also reporting that the headset is a huge drain on your phone's battery, can cause your phone to overheat, and you may experience eye fatigue if you use the headset several hours. All users loved the low price and highly emersive VR experience.

Some Altenatives

If you are still hesitant to dive in and buy the Samsung Gear VR headset, there are several lower-priced alternatives (yes, there are) you may wish to consider. All of these fall into the "starter" category and are a great way to experience virtual reality on the cheap.

Google Cardboard VR is a starter headset made of cardboard that sells for $12.98 on Amazon. Owners called the Google Cardboard VR headset "simple, fun and affordable." To use the headset you need to download the free Cardboard app from Google Play. According to Google Play, the Cardboard app has been reviewed by nearly 69,000 owners and has received an average user review of 4.2 stars (out of 5). The Google Cardboard VR headset will accommodate phones with displays up to 6-inches in size and running Android OS 4.1 or higher. Google Play claims between 1-5 million Cardboard app downloads. Amazon says they are temporarily out-of-stock, but the site says they will have more on December 19, 2015. Hypergrid Business published a list of 22 online sites where you can buy Google Cardboard VR. Google Cardboard is also available through Walmart and BestBuy, but you will pay a bit more. The Google Cardboard VR head garnered a review of 4 stars on Google Play. 74% of owners gave it 5 stars.

View-Master VR Starter Pack - Is compatible with and uses the Google Cardboard app (see above). The Starter Pack includes one View-Master viewer, one Preview Reel, one adapter for the iPhone 5, iPhone 5c and iPhone 5s and a user guide. The Preview Reel included with the Starter Pack allows you to sample View-Master VR apps, such as Space, Destinations and National Geographic: Wildlife. You can fully explore these exotic new worlds by purchasing View-Master VR Experience Packs (sold separately). Reviews averaged 4 stars from Amazon users. Available at Amazon, Target, Toys R US, Barnes & Noble and Walmart. $24.99 to $29.99.

FIVESUNG 3D VR headset - This is a knock-off of the Google Cardboard VR viewer, but made of plastic. Reviews are all over the place. Reviews averaged 3 stars from Amazon users. Available at Amazon and owner reviews were mixed averaging 3.8 stars (out of 5). Price: $19.99.

Courtesy of an article dated November 15, 2015 appearing in Engadget, an article dated November 20, 2015 appearing in CNN Money, an article dated October 28, 2015 appearing in Wearable, an article dated December 12, 2015 appearing in Tech Times, an article dated November 23, 2015 appearing in Tech Times, and an article dated August 10, 2014 appearing in Hypergrid Business

10/26/2015

Google is working on a new wearable technology effort known as Project Aura and is hiring consumer electronics experts from Amazon's secretive Lab126 to jump-start the new group.

Project Aura appears to have gotten started in June and is focused on reviving Google's troubled Glass computer eyeglasses, as well as accelerating Google's efforts to develop related wearable technology.

Project Aura will remain within Google rather than being a standalone company under the new Alphabet holding company or being folded into the Nest smart appliances business, a source familiar with the matter told Business Insider.

Nest CEO Tony Fadell will continue to have high-level oversight of the project, though it's unclear what will happen after Nest becomes a separate Alphabet company, the source said. Ivy Ross, a fashion industry veteran that Google hired to lead the Glass team in 2014, is heading up the Aura group.

Google has hired at least three employees from Lab126, Amazon's hardware division, to work in the new group and Aura has a dedicated recruiter tasked with bringing in more talent.

Several LinkedIn profiles and job listings viewed by Business Insider describe Project Aura as "Google Glass and Beyond."

The new Aura group provides a much-needed re-branding to the tattered Glass image as well as opening the door to a broader scope of wearable technology initiatives to help Google compete against rivals such as Facebook, Apple, and Microsoft.

By remaining within Google, the Aura group will be able to collaborate more closely with other advanced technology efforts such as Soli, which allows consumers to control gadgets through gestures such as rubbing fingers together, and Cardboard, which turns ordinary smartphones into virtual-reality devices using a cardboard headset.

While virtual-reality technology is an growing area of focus within the technology industry, particularly as Facebook preps the release of its Oculus VR headset, the source said it's still too soon to know whether the Aura group will be focused specifically on VR.

Although Business Insider first spotted Google job postings that indicated that the company planned to release other products in the Google Glass division besides just smart eyewear back in May, the existence of the Project Aura group and its new hires has not been reported until now.

Google stopped selling the initial $1,500 version of Glass to consumers earlier this year following waning interest and criticism that the device was too expensive and clunky, without enough practical-use cases. The head-mounted device, which allowed users to record video, also raised privacy concerns and caused a consumer backlash.

Google co-founder Sergey Brin officially unveiled Google Glass at the Google I/O 2012 Developer's Conference held at Moscone Center in San Francisco. It was one of the most exciting, buzz-filled new product unveilings that I have ever witnessed. If you didn't catch the Google Glass unveiling here's the Google Developer's video.

Incidentally, both Steve Jobs and Steve Wozniak shotdown the idea for wearable VR glasses. Jeff Soto – an ex-Apple employee and founder of TENDIGI – a mobile development firm, writing on his personal blog – I am not Robot narrates an interesting story, which explains the reason Jobs shotdown wearable glasses like Google Glass.

"As soon as I saw the video for Google’s Project Glass I instantly recalled a funny story from my time at Apple. I was once at a Town Hall meeting in Cupertino where Steve Jobs commented on this type of wearable computing. An Apple employee in the audience asked Steve a question to the extent of: 'How can we reach out to our leadership if we have a really good idea'. Steve immediately put him on the spot and made him pitch the idea in front of everyone there. An opportunity to pitch Steve Jobs. What? The employee proceeded to pitch an idea about glasses you can wear that display various types of information. A heads up display a’la terminator cyborg vision if you will. He continued to explain how he wished he had a way to see projected information while he perhaps went for a run outside. Keep in mind this is happening in a room filled with a lot of people. Steve immediately shot his idea down and told the guy that he would probably trip and fall if that were the case. Steve also suggested he should get a girlfriend so he has someone to keep him company while running. I can not watch this Project Glass video without recalling this moment. So if you’re wondering what Steve would think about Project Glass, that’s pretty much it."

Google Glass Sales Suspended

The original Google Glass cost $1,500, and was only available to conference attendees. An estimated 2,000 people placed pre-orders.

Almost a year later, despite outstanding pre-orders, Google expanded the project. A competition was set up where the public were invited to explain what they'd do with Glass. They had to use the hashtag #ifihadglass.

In May 2014, Google started selling its new Glass Explorer for $1,500 through Google Play store to anyone who wanted it after months of exclusive, invite-only availability.

Google hasn’t disclosed sales of Google Glass, but Statista estimated that more than 831,000 units were sold in 2014. (NOTE: I find this number difficult to believe)

In January 16, 2015, Google suddenly suspended sales of Google Glass Explorer, its most hyped new product offering to come along in a long time. Sales were suspended not because Google Glass failed commercially, but because of the controversey Googe's "smart glasses" raised. The following infographic lists several issues that many people raised about Google Glass.

Click Image To Enlarge

Ori Inbar, the chief executive of the non-profit AugmentedReality.org, said it couldn’t be “farther from the truth” to call Google Glass dead, or a failure. He says Google has sold more hardware in the smart glass category than anyone else so far, which has helped to raise public awareness and create inroads for competition. Inbar said.

“Google elevated public awareness to smart glasses to an unprecedented level.”

Google's suspension of Google Glass gives competitors like archrival Epson, which was at the Consumer Electronics Show in Las Vegas in early January 2015 full force showcasing its eyewear enterprise apps, the opportunity to grow their own installed base in its wake.

The popularization of smart glasses in the workplace has created inroads for other tech heavyweights to launch their own augmented reality glasses, attachments and goggles as well. Sony and Microsoft both stepped into the breach in January 2015, Sony with its SmartEyeglass Attach prototype that would clip into an existing pair of glasses, and Microsoft with HoloLens, a headware that implants holographs into the physical places, spaces and things of a wearer’s actual reality.

Lab126 Experts

Dima Svetlov, whose LinkedIn profile says he worked on Amazon's TV streaming stick, joined Aura as a software development manager in May. Amir Frenke joined in June as a director of software development. Tina Chen left Lab126 in August after working on its TV streaming box and smart-home assistant, Echo, and now works as Aura's manager of technical program management.

Svetlov, Frenke, and Chen, whose LinkedIn profiles don't reveal any details about Project Aura besides the description that it works on Glass "and beyond," are joining Apple veteran Max Ratner, who worked on the iPhone.

The project even has its own designated recruiter, Jessica Bailow, who has been focused on Aura since June, according to her LinkedIn profile. And Google recently posted several job openings for the Aura team, including a program manager for category development, an industrial designer and a UX designer.

Business Insider also recently reported that Adrian Wong, the former Google Glass lead electrical engineer, who had defected to Facebook-owned virtual-reality startup Oculus, quietly rejoined Googlein June. His LinkedIn profile describes his new job only as "building blocks" for Alphabet/Google.

But the added description that "G is for Gadgets, Glasses, and Goggles" suggests that he may be working on Project Aura as well.

Google declined to comment.

Courtesy of an article dated September 16, 2015 appearing in Business Insider, an article dated April 12, 2012 appearing in iPhoneHacks.com, an article dated January 30, 2015 appearing in MarketWatch, and an article dated September 5, 2014 appearing in The Verge

Tommy Hilfiger became the first major retailer to make virtual reality a fixture in its stores this week, offering its shoppers a virtual trip, via a Samsung GearVR headset, to the label’s fall fashion show in New York this year.

The virtual reality headsets, which Tommy Hilfiger began renting out at its Fifth Avenue store in New York on Tuesday, give shoppers a three-dimensional, front-row view of the show, held at New York’s Park Avenue Armory.

During a preview, a reporter donned a GearVR and sat a few virtual feet away from models as they strutted down a football-themed runway. Visible above was the cavernous ceiling of the Armory; turning around revealed rows of guests, almost touchable.

To capture the all-around image, Tommy Hilfiger worked with the Netherlands-based start-up WeMakeVR, which filmed the show using a 3-D camera fitted with 14 special lenses. The lenses allow the camera to capture video in 360 degrees both vertically and horizontally, with no blind spots.

Daniel Grieder, Tommy Hilfiger’s chief executive, said the virtual reality headsets would allow shoppers who might never attend a fashion show to view and shop the season’s runway styles. He also said the headsets, which will be installed in the brand’s biggest flagship stores in the United States and Europe, would inject Tommy Hilfiger locations with an element of entertainment.

That is vital to brick-and-mortar stores as they fight to stay relevant in an increasingly digital world, he said.

Mr. Grieder said.

“These days, you can’t just wait for people to come into the store and try on your jackets. You have to provide entertainment. It’s not about turnover by square foot anymore. It’s about surprise by square foot, or newness.”

'These days, you can’t just wait for people to come into the store and try on your jackets. You have to provide entertainment," said Daniel Grieder, chief executive of Tommy Hilfiger. (Click Image To Enlarge)

Tommy Hilfiger, which had sales of $6.7 billion in 2014 and is owned by PVH Corp, is one of many retailers exploring virtual reality as a sales tool as they compete with online sellers for shoppers’ attention. But actual adoption of the technology in stores has been slow, as headset makers iron out kinks and bring consumer models to the market.

Next month, Samsung is set to release the consumer version of its GearVR, which uses a smartphone as its processor and display. Facebook’s Oculus VR is expected to begin widely selling a VR headset next year. Sony will ship its own virtual reality headset for its PlayStation 4 console, known as Project Morpheus, during the first half of next year.

But there are still plenty of reasons to question whether virtual reality, promoted for decades as the next big thing, will finally take off in gaming or in retail. Reducing the discomfort that virtual reality can cause for some people, and downsizing the unwieldy headsets, are some remaining challenges.

Virtual reality advocates are quick to distance the technology from other fads that have since fizzled out.

Avinash Changa, WeMakeVR’s chief executive, said.

“Cinema in 3-D was a trick, a gimmick. But VR can be relevant. We’re applying the technology beyond the gimmick.”

COMMENTARY: The new Samsung GearVR headset technology launched on October 20, 2015 at the Tommy Hilfiger store on New York’s Fifth Avenue, followed by several addition locations including London, Paris, Milan, Amsterdam, Dusseldorf, Florence, Zurich, and Moscow. Shoppers will receive an immersive encounter.

The idea is to create the impression that one is sitting in the front row of Manhattan’s Park Avenue Armory at show time on February 16, 2015, which is when the collection originally premiered. The experience will offer users an unhindered view of the runway and backstage—a section typically cordoned off from outsiders.

The installation lives in-store in a dedicated area that reflects the American football theme of the show alongside the Hilfiger Collection designs, which consumers can purchase immediately. The platform is also launching at wholesale with Selfridges, London’s iconic department store.

Daniel Grieder, CEO of Tommy Hilfiger. said.

“We are driven by a vision to exceed consumer expectations, inspire, and offer experiences they never thought possible. We’re using virtual reality to open the doors to a unique part of our world, directly connecting the consumers in our retail space with one of our largest brand events.”

09/24/2015

Today Oculus gave 1,500 developers at the Oculus Connect 2 conference (as well as those at home via livestream or on Gear VR a chance to watch) a look at how the consumer version of the Oculus Rift will roll out in Q1 2016, how Oculus plans to bring virtual reality to millions through the Samsung Gear VR, and how new platforms and controllers will expand the uses of Oculus Rift from games, photos, videos and art.

“This is the dawn of VR and this is a once in a generational moment that we can create something that inspires millions of people.”

Click Image To Enlarge

Iribe brought Mark Zuckerberg on stage, who said.

“[Virtual reality is] like teleporting to some other place by putting on a headset. I was so excited with it because I realized I was seeing the next big technology platform. After video, the next logical step is fully immersive virtual reality. VR is the next platform. In just a few years, VR has gone from being a science fiction dream to reality. All of you are inventing the next major platform.”

Click Image To Enlarge

Later in the keynote, Iribe said the Oculus Touch handheld motion controllers will be shipping in the second quarter of 2016. However they will be available to developers earlier and will include a second Rift sensor.

Toybox, which is being demoed here at the event, is an example of how Touch can be used in a virtual world. Iribe said.

"Toybox demonstrates the power of social VR and is just stretching the surface. It has the potential to be more social than any platform we’ve seen yet.”

The Touch SDK will include the APIs, controller position, as well as avatar hands.

Samsung Gear VR headset works with the complete line of 2015 Samsung Galaxy smartphones and is powered by the Oculus VR virtual reality software (Click Image To Enlarge)

Medium, which Oculus’ new painting app, will open up a new medium, Iribe said.

“Every great platform needs a paint app and this is going to be our paint app.”

Medium will also be demoed here at Connect. It allows you to use your hands to create 3D sculptures in VR.

The Oculus and Samsung partnership to build the Gear VR will open virtual reality to a more mainstream audience with its $99 price point. Though not as powerful as the forthcoming Rift, it only needs a Samsung phone to run and will make it affordable for more consumers to experience VR, starting when it ships in November 2016.

Nate Mitchell, VP Product at Oculus, announced that the consumer version of Oculus Rift virtual reality will be out Q1 2016 (and it will come with an Xbox one controller). Mitchell discussed the launch of the Oculus Ready PC program, which works with NVIDIA and Intel. PCs that work for developers will have an “Oculus Ready” badge on them. The partners include Asus, Dell, Alienware, NVIDIA, and Intel. The specs will be NVIDIA GTX 970/ AMD 290 or greater, Intel i5-4590+, and 8GB+ RAM. All the rigs Oculus showed off cost under $1000.

The Rift SDK 1.0 will be available in December. The number of developers continues to grow: Mitchell said there are more than 200,000 Oculus Developer Center Users.

The Rift is not only for games. Oculus has made an effort to explore new forms of storytelling through its Story Studio department. The first short film Lost was followed by the second short film Henry, which is about a hedgehog that tries to make friends despite his prickly nature. Today on Oculus Share, Henry is available for viewing by anyone with a DK2 and will be available for download for anyone who wants to see how it was produced.

Click Image To Enlarge

The Oculus Platform will have social features, games and app services, and commerce. There will be more features around user profiles including Oculus IDs and avatar pictures. The Oculus Platform will also have its own robust friend graph. There are rooms so people can connect with a group of people before they go into a virtual world.

For developers wanting feedback on their content before sharing it on Oculus Share, the new Oculus Concepts program will let developers distribute content early to testers. It will launch on Gear VR and next year on the Rift.

Palmer Luckey, founder and visionary of Oculus, announced Minecraft is coming to Oculus. It is available for purchase on the Minecraft Windows 10 Edition and Oculus Share in the spring of 2016. Luckey then threw out some Minecraft swag to the crowd, elating fans of the Lego-like building game.

Click Image To Enlarge

The 20 new VR experiences in Gear VR, Rift, and Touch will be demoed today. All of the Touch demos were built with Unity or Unreal Engine. One that’s sure to be a favorite is Netflix, which comes to Gear VR today, and Twitch is coming soon.

While today lacked any blockbuster device reveals, it strengthened the foundation of Oculus’ hardware, software, and platform. The Gear VR now has seductive experiences that will draw rookies towards virtual reality. And the Rift has the developer capabilities necessary to unlock games and apps that will convince people it’s worth the price. In short, after years experimenting in the basement, Oculus is ready for the spotlight.

COMMENTARY: Other highly anticipated games are coming to the Samsung Gear VR:

Monument Valley, a new title from game maker Ustwo.

Lucky's Tale, a cartoonish adventure game from Texas game company Playful.

Eve: Gunjack, a high-energy space shootout game from Ieland game maker CCP.

Bullet Train, a new Unreal Engine VR experience from Epic Games, which is a first-person shooter game where players can use their own hands to aim, fire and throw weapons.

Oculus is also working with Microsoft to adapt its technology to the popular Xbox video game console. and it's working with media companies like Netflix, 20th Century Fox and Lionsgate to bring hit films including Alien, Die Hard, Predator and Birdman and TV shows to the device as well.

To make the Oculus Rift more appealing to customers, Oculus said it has partnered with companies like Alienware, Dell and Asus to sell PCs that are Oculus-ready and able to power virtual reality games and experiences. Some of those PCs, Oculus said, will cost less than $1,000.

Oculus isn't the only company building VR devices.

HTC is partnering with game maker Valve to release a competing headset, Vive, later this year.

Oculus plans another headset, Rift, that will work with computers when it's released early next year.

A long time coming

VR has been a common trope in science fiction -- think Star Trek -- where it's seen a key element of training and entertainment simulations. But its history in the real world has been marked by frustration as clunky technology and high-price tags discouraged both companies and consumers from embracing it.

After decades of false starts, including the high-profile failure of game giant Nintendo's Virtual Boy, the industry may have a product it can sell at an affordable price. VR headsets contain hundreds of high-tech parts, many of which are also used in smartphones, a booming market where leading companies have driven down costs for everything from high-quality screens to gyroscopic sensors.

Palmer Luckey, the 23-year old inventor behind Oculus, is also behind the optimism. His Rift headset reignited interest in VR when it was announced in 2012, promising to make the technology affordable and easy to use. Oculus quickly became one of the leading companies making the technology, attracting some of the most high profile names in the technology industry such as VR researcher Michael Abrash and game making legend John Carmack, who headed development of key games like Doom and Quake.

Oculus Rift headset unveiled in 2012 (Click Image To Enlarge)

Michael Abrash, Oculus Rift chief scientist, said the attention the industry is getting and the speed with which it's growing has been surprising. He said.

"Just a few years ago, all of this would have been totally inconceivable."

Oculus also offered details about the Oculus Touch controllers it's developed for the Rift headset. The company said they'll be offered to consumers by the middle of next year, and will have a compliment of games and experiences prepared when it does. One will be called Toy Box, in which people can stack blocks, throw balls and shoot guns.

All of this will likely attract enthusiasts to buy its device, but whether general consumers will buy in is still unclear. Zuckerberg said even smartphones didn't sell in large numbers initially, and suggested VR may follow that trend as well. Zuck said.

"Facebook is committed to this for the long term."

Courtesy of an article dated September 24, 2015 appearing in TechCrunch and an article dated September 24, 2015 appearing in C|NET and an article dated September 24, 2015 appearing in Forbes